On Monday, the world received good news that Pfizer and its partner, the German company, BioNTech, announced preliminary results that suggested their vaccine was more than 90 percent effective. Together with Joe Biden’s election victory, Global Stock Market surge to record high.
Travel, Airline, Manufacturing, Cruise, Pharm and Energy stocks rallied more than double digit percentage. SIA rose close to 15% in a day, while some airline stocks in other countries rallied more than 20%.
But not everyone is cheering. Tech, Data, Glove manufacturer stocks suffered opposite fate.
In the USA, Amazon and Netflix shed up to 10% or more. The most dramatic plunge is Zoom, falling from almost 500 to below 370, falling 35% within just a matter of days.
In HKSE, China Tech stocks have a complete twist of fortune, having peaked in previous week after’s Biden’s victory. The vaccine news and the news of China drafting anti-monopolistic rules aimed at tech giants is double whammy for China Tech stocks. Alibaba lost ~18% to below 250. Meituan and JD.com sheds 20% or more. Tencent performs slightly better, perhaps due to the positive earning calls happening this week. But still falling more than 10%.
Back at home SGX, Keppel DC Reit and Mapletree Industrial Trust tumbles ~10% or more to below 2.70 and 2.90 respectively.
If those of you who believes that Tech companies (with the stocks aforesaid) are here to stay and will continue to outperform in the post Covid world, I think it definitely presents a good opportunity to accumulates these stocks!
I am going to be Hawkish myself!